IMPACT OF CULTURAL DISPARITIES ON FOOD

CHAINS INTERNATIONALLY
Introduction
Introduction

Cultural Disparities in food

indicator of Socially-and culturally-patterned differences in food habits exist both

between and within European populations. Daily individual food availability data,
collected through the national household budget surveys (HBS) and harmonized in the
context of the Data Food Networking (DAFNE) project, were used to assess disparities
in food habits of seven European populations and to evaluate dietary changes within a
10-year interval. The availability of selected food items was further estimated according
to the educational level of the household head and, based only on the Greek HBS data,
according to quintiles of the household's food purchasing capacity. Results for overall
food availability support the north-south differentiation in food habits. Generally, the
availability of most food items, including foods such as vegetable fats, animal lipids and
sugar products, has decreased over the 10 years. Households in which the head was in
the higher education categories reported lower availability for most food items, with the
exception of low-fat milk, fresh fruit, animal lipids and soft drinks; the latter showing a
sharp increase even within southern European households. The household's food
purchasing capacity can be used as an socio-economic status, with higher values being
associated with lower status. Greek households of lower social class follow a healthier
diet in terms of greater availability of vegetable oils, fresh vegetables, legumes, fish and
seafood. Data from the DAFNE databank may serve as a tool for identifying and
quantifying variation in food habits in Europe, as well as for providing

information on the socio-economic determinants of food preferences.

Fast food is the term given to food that can be prepared and served very quickly. While any
meal with low preparation time can be considered to be fast food, typically the term refers
to food sold in a restaurant or store with low quality preparation and served to the
customer in a packaged form for take-out/take-away.
Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food
restaurants (also known as quick service restaurants). Franchise operations which are part
of restaurant chains have standardized foodstuffs shipped to each restaurant from central
locations.

The capital requirements involved in opening up a fast food restaurant are relatively low.
Restaurants with much higher sit-in ratios, where customers tend to sit and have their
orders brought to them in a seemingly more upscale atmosphere may be known in some
areas as fast casual restaurants.

History

The concept of ready-cooked food for sale is closely connected with urban development. In
Ancient Rome cities had street stands that sold bread and wine. A fixture of East Asian
cities is the noodle shop. Flatbread and falafel are today ubiquitous in the Middle East.
Popular Indian fast food dishes include vada pav, panipuri and dahi vada. In the French-
speaking nations of West Africa, roadside stands in and around the larger cities continue to
sell—as they have done for generations—a range of ready-to-eat, char-grilled meat sticks
known locally as brochettes.

The Start of Fast Food Culture

The concept of fast food pops up during 1920s.The 1950s first witnessed their rapid
proliferation. Several factors that contributed to this explosive growth in 50’s were:
(1) America’s love affair with the automobiles.
(2) The construction of a major new highway system.
(3) The development of sub-urban communities.
(4) The baby boom subsequent to world war second.
“Fast-food chains initially catered to automobile owners in suburbia.

On the go
Fast food outlets are take-away or take-out providers, often with a "drive-through" service
which allows customers to order and pick up food from their cars; but most also have a
seating area in which customers can eat the food on the premises. People eat there more
than five times a week and often, one or more of those five times is at a fast food
restaurant.

Nearly from its inception, fast food has been designed to be eaten "on the go", often does
not require traditional cutlery, and is eaten as a finger food. Common menu items at fast
food outlets include fish and chips, sandwiches, pitas, hamburgers, fried chicken, French
fries, chicken nuggets, tacos, pizza, hot dogs, and ice cream, although many fast food
restaurants offer "slower" foods like chili, mashed potatoes, and salads.

Variants

Although fast food often brings to mind traditional American fast food such as hamburgers
and fries, there are many other forms of fast food that enjoy widespread popularity in the
West.

Chinese takeaways/takeout restaurants are particularly popular. They normally offer a

wide variety of Asian food which has normally been fried. Most options are some form of
noodles, rice, or meat.

Sushi has seen rapidly rising popularity in recent times. A form of fast food created in
Japan. sushi is normally cold sticky rice served with raw fish.Pizza is a common fast food
category in the United States, with chains such as Domino's Pizza, Sbarro and Pizza Hut.
Menus are more limited and standardized than in traditional pizzerias, and pizza delivery,
often with a time commitment, is offered.

Fish and chip shops are a form of fast food popular in the United Kingdom, Australia and
New Zealand. Fish is battered and then deep fried.The Dutch have their own types of fast
food. A Dutch fast food meal often consists of a portion of French fries .

Business
In the United States alone, consumers spent about US$110 billion on fast food in 2000
(which increased from US$6 billion in 1970). The National Restaurant Association
forecasted that fast food restaurants in the U.S. would reach US$142 billion in sales in 2006,
a 5% increase over 2005. In comparison, the full-service restaurant segment of the food
industry is expected to generate $173 billion in sales.

Jobs and labor issues

Today, more than 10 million workers are employed in the areas of food preparation and
food servicing including fast food in the world.

Employees are the backbone of the fast food industry. Proper training is crucial to the
orderly and quick service customers expect. Yet, employee turnover can be as high as
200% per year. With such a turnover, owner-operators of franchise and non-franchise
restaurants have the daunting task of constantly training an entirely new workforce.
Policies and procedures need to be explained to each new employee.

Globalization

In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 billion and
a volume of 80.3 billion transactions. In India alone the fast food industry is growing by
40% a year. McDonald's is located in 120 countries and on 6 continents and operates over
31,000 restaurants worldwide.

KFC is located in 25 countries. Subway has 29,186 restaurants located in 86 countries,

Pizza Hut is located in 26 countries, Taco Bell has 278 restaurants located in 12 countries
besides the United States.

Health issue
Tran’s fats which are commonly found in fast food have been shown in many tests to have a
negative health effect on the body.

The fast food consumption has been shown to increase calorie intake, promote weight gain,
and elevate risk for diabetes. The Centers for Disease Control and Prevention ranked
obesity as the number one health threat for Americans in 2004. It is the second leading
cause of preventable death in the United States and results in 400,000 deaths each year.

FAST FOOD INDUSTRY IN INDIA

INDIA – EMERGING MARKET FOR GLOBAL PLAYERS

The percentage share held by foodservice of total consumer expenditure on food has increased
from a very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in
Indian culture and changes in eating habits are very slow moving with barriers to eating out
entrenched in certain sectors of Indian society.. The growth in nuclear families, particularly in
urban India, exposure to global media and Western cuisine and an increasing number of
women joining the workforce have had an impact on eating out trends.

FACTS AND FIGURES

Fast food is one of the world’s largest growing food type. India’s fast food industry is growing
by 40% a year and is expected to generate a billion dollars in sales by 2005.The multinational
segment of Indian fast food industry is up to Rs. 6 billion, a figure expected to zoom to Rs.70
billion by 2005. By 2005, the value of Indian dairy products is expected to be Rs.1, 00,000
million. In last 6 years, foreign investment in this sector stood at Rs. 3600 million which is
about one-fourth of total investment made in this sector. Because of the availability of raw
material for fast food, Global chains are flooding into the country.

MARKET SIZE & MAJOR PLAYERS

a) Dominated by McDonalds having as many as 75 outlets.
b) Domino’s pizza is present in around 100 locations.
c) Pizza hut is also catching up and it has planned to establish 125 outlets at the end of
2005.
 d) Subways have established around 40 outlets.
e) Nirulas is established at Delhi and Noida only. However, it claims to cater 50,000
guests every day.

Major players in fast food are:

 MCDONALDS
 KFC
 PIZZA HUT
 DOMINOS PIZZA.
 COFFEE DAY
The main reason behind the success of the multinational chains is their expertise in product
development, sourcing practices, quality standards, service levels and standardized operating
procedures in their restaurants, a strength that they have developed over years of experience
around the world. The home grown chains have in the past few years of competition with the
MNCs, learnt a few things but there is still a lot of scope for improvement.

REASON FOR EMERGENCE

Gender Roles: gender roles are now changing. Females have started working outside. So, they
have no time for their home and cooking food. Fast food is an easy way out because these can
be prepared easily.
Customer Sophistication and Confidence: consumers are becoming more sophisticated now.
They do not want to prepare food and spend their time and energy in house hold works. They
are building their confidence more on ‘ready to eat and easy to serve’ kind of foods
Paucity of Time: people have no time for cooking. Because of emergence of working women
and also number of other entertainment items. Most of the time either people work or want to
enjoy with their family.
Double Income Group: emergence of double income group leads to increase in disposable
income. Now people have more disposable income so they can spend easily in fast food and
other activities.
Working Women: working women have no time for cooking, and if they have then also they
don’t want to cook. Because they want to come out of the traditionally defined gender roles.
They do not want to confine themselves to household work and upbringing of children’s.
Large population: India being a second largest country in terms of population possesses large
potential market for all the products/services. This results into entry of large number of fast
food players in the country.
Relaxation in rules and regulations: with the economic liberalization of 1991, most of the
tariff and non tariff barriers from the Indian boundaries are either removed or minimized. This
helped significantly the MNC’s to enter in the country.
Menu diversification: increase in consumption of pizzas, burgers and other type of fast foods.
CHALLENGES FOR THE INDUSTRY
Social and cultural implications of Indians switching to western breakfast food:
Generally, Hindus avoid all foods that are believed to inhibit physical and spiritual
development. Eating meat is not explicitly prohibited, but many Hindus are vegetarian because
they adhere to the concept of ahimsa. Those seeking spiritual unity may avoid garlic and
onions. The concept of purity influences Hindu food practices. Products from cows (e.g., milk,
yogurt, ghee-clarified butter) are considered pure. Pure foods can improve the purity of impure
foods when they are prepared together. Some foods, such as beef or alcohol, are innately
polluted and can never be made pure. But now, Indians are switching to fast food that contain
all those things that are considered impure or against there beliefs. Some traditional and
fundamentalist are against this transformation of food habit and number of times they provoke
their counterparts to revolt against such foods. And that is what happened when McDonald’s
decided to enter the complexity of Indian business landscape, counting only on its “fast food
global formula”, without any apparent previous cultural training.
Emphasis on the usage of bio-degradable products: Glasses, silverware, plates and cloth
napkins are never provided with fast food. Instead, paper plates and napkins, polyurethane
containers, plastic cups and tableware, drinking cartons or PET (polyethylene terephthalate)
bottles are used, and these are all disposable. Many of these items are tossed in the garbage
instead of being recycled, or even worse, merely thrown on the ground. This burdens nature
unnecessarily and squanders raw materials. In order to reduce soil and water pollution,
government now emphasis more on the usage of bio-degradable products.
Retrenchment of employees: Most of new industries will be capital intensive and may drive
local competitors, which have more workers, out of business.
Profit repatriation: Repatriation of profits is another area of concern for Indian economy. As
when multinational enters the any countries, people and government hope that it will increase
the employment rate and result in economic growth. However, with the multinational
operation, host country experiences these benefits for a short time period. In long run neither
employment increases (because of capital intensive nature of MNC’s) nor it increases the GDP
or GNP because whatever MNC’s earn they repatriate that profit back to their home country.

PROBLEMS OF INDUSTRY
Environmental friendly products cost high: government is legislating laws in order to keep
check on the fast food industry and it is emphasizing more on the usage of bio-degradable and
environment friendly products. But associated with this issue is the problem that fast food
player faces - the cost associated with the environment friendly product. They cost much
higher than the normal products that companies uses for packaging or wrapping their
products.

Balance between societal expectation and companies economic objectives: To balance a

society’s expectation regarding environment with the economic burden of protecting the
environment. Thus, one can see that one side pushes for higher standards and other side tries
to beat the standard back, thereby making it a arm wrestling and mind boggling exercise.

Health related issues: obesity:

I. Studies have shown that a typical fast food has very high density and food with high
density causes people to eat more then they usually need. \
II. Low calories food: Emphasis is now more on low calorie food. In this line McDonald has
a plan to introduce all white meat chicken Mcnuugget with less fat and fewer calories.

TRENDS IN INDIAN MARKET

Marketing to children's: fast food outlets in India target children’s as their major
customers. They introduce varieties of things that will attract the children’s attention and
 by targeting children’s they automatically target their parents because Children’s are
always accompanied by their parents.
Low level customer commitment: Because of the large number of food retail outlets and
also because of the tendency of customer to switch from one product to other, this industry
faces low level customer commitment.
Value added technology services: There is continuous improvement in the technology as
far as fast food market in India is considered. The reason behind that is food is a perishable
item and in order to ensure that it remain fresh for a longer period of time. Earlier, Indian
people prefer eating at home but now with the change in trend there is also need for
improvement and up gradation of technology in food sector.

Attracting different segments of the market: Fast food outlets are introducing varieties
of products in order to cater the demands of each and every segment of the market. They
are introducing all categories of product so that people of all age, sex, class, income group
etc can come and become a customer of their food line.

The success of fast foods arose from the changes in our living conditions:
1. Many women or both parents now work
2. There are increased numbers of single-parent households
3. Long distances to school and work are common
4. Usually, lunch times are short
5. There's often not enough time or opportunity to shop carefully for groceries, or to
cook and eat with one's family. Especially on weekdays, fast food outside the home
is the only solution.

FOOD SUPPLY CHAIN:SAFETY NORMSS

Background
Food safety has long been recognized as a mandatory requirement in the production and
marketing of foods. Traditional approaches to food safety management have relied upon end
product sampling and laboratory testing. Detailed procedures were developed to set
specifications for foods in regard to chemical and microbiological levels, and also levels of
physical contamination. Such specifications were originally derived from knowledge of Good
Manufacturing Practice (GMP) requirements and more recently from detailed risk assessments
which determined the likelihood of hazards presenting a risk to public health and safety. Food
product specifications and end product testing have traditionally formed the primary basis for
regulatory oversight of food safety. In some areas this is still the case today. A major
change in approach arose when it was demonstrated that hazard identification and control
could be used to manage food safety across the entire agri-food supply chain, rather than at
some endpoint. This approach led to the adoption of the now well accepted Hazard Analysis
and Critical Control Point (HACCP) system which emphasized preventative approaches.
Whereas the initial research relating to food product hazard control was undertaken several
decades ago, the impetus for its adoption in the food sector became very significant in the 1990s.
A second area of development is the concept of “hurdle technology” where a series of food
safety measures are used, sometimes in steps, to gain synergy in the interaction and
effectiveness of several food safety measures. The correct application of a series of hurdles can
achieve the same product safety as a single food safety measure such as a kill step. Continuing
research underpinning food safety management has provided a number of new approaches,
and tools, which have strengthened risk assessment capability, and allowed a clearer delineation
between risk assessment and risk management. This has enabled a transition from end product
specification and testing to a focus on establishing new measures of food safety such as Food
Safety Objectives and associated metrics (ICMSF 2002). This allows the food industry greater
flexibility when examining approaches to food safety management.

Keeping food safe: A growing global challenge

Keeping food safe as it moves through the supply chain is a significant challenge. Perishables
such as produce, meat, fish, milk and more can change hands ten to twenty times before reaching
the consumer. This fact alone presents many opportunities along the supply chain for accidental
or malicious mishandling that can lead to contamination or spoilage. And a host of new issues
and trends, from the globalization of the supply chain to the type of foods that are imported,
takes the challenge of protecting the safety of the food in the supply chain to new heights.
Changes in consumption trends

Today’s busy consumers often rank convenience over price — a trend that can translate into
increased opportunities for food contamination. For example, many consumers today would
prefer to purchase a bag of prepared ready-to-eat lettuce instead of a head of lettuce that must be
prepared. As a result, bacteria in a tainted head of lettuce that may have only affected one family
in the past might now end up in multiple of bags of lettuce, potentially causing foodborne illness
in hundreds of people.

Another challenge in the food chain: increased government regulations

In response to growing food safety issues, new government regulations have been developed to
help protect food as it travels through the supply chain. While these regulations do improve
consumer safety, they also translate into a substantial increase in recordkeeping requirements for
companies throughout the food supply chain. For example, federal regulations in the U.S such as
The Federal Public health security and bioterrorism Preparedness and Response act of 2002
(enacted after September 11, 2001) and the U.S. FDA Good

Manufacturing Practice Regulations as well as the EU food laws defined by the European
commission (EC) now require the collection and maintenance of detailed specific information as
food moves through the supply chain. In order to remain profitable, enterprises in the food
industry need to accurately and cost-effectively collect, filter and react to this massive amount of
information — a task at which RFID excels.

RFID — A critical new link in the food supply chain

RFID can help improve the efficiency and safety of the food supply chain by enabling the
collection of the vast amount of data required to ensure the safety of food as it moves through
either the national or international food supply chain. Passive RFID tags provide cost-effective
tracking and traceability as food moves through the supply chain, while temperature-sensing and
data logging RFID tags capture information about the conditions the food is subjected to on the
journey from field to fork.

“With RFID, food is tracked from the moment it is picked in the field. RFID tags are applied to
collection bins, and when a bin is full, an RFID-enabled mobile computer is utilized to read the
tag. The unique identifier associated with the bin is captured the date and time are automatically
recorded, and any other additional information needed to enable full traceability back to the
origin of the product is entered, such as the picker’s name and the picking location. The
automation of the data collection process protects the integrity of the data set, and encourages
the capture of a richer set of information due to the simplicity of data input. And when combined
with a locationing technology such as GPS, RFID can automatically record the exact location in
the field where the produce was picked, allowing growers to pinpoint the source of contaminated
produce quickly and more cost-effectively — protecting the health of consumers as well as the
business.”

The RFID advantage: improving food safety and supply chain efficiency

In the food supply chain, consumer safety and enterprise profitability are both dependent upon
how rapidly product can move from the field, pasture and sea to the grocer’s shelves — as well
as visibility into how the product was handled along the way. RFID improves both.

 Food safety improvements

Superior visibility into the movement of products through the supply chain provides the real time
granular data required to make better business decisions that increase the safety of the food
supply at every junction in the supply chain:

 Visibility into harvest times and product temperature condition enables FeFo (First to
expire, First out) inventory management’, helping product move more rapidly from field
to fork as well as reducing the opportunity for spoilage, foodborne illness and loss of
product.

 Distributors and grocers now have visibility into the length of time a product has been
traveling through the supply chain, condition during transit and remaining shelf life.
More volatile perishables can be processed first, accuracy of “best by” date stamps is
increased; and distributors and grocers can recognize and refuse any product where
quality may have been compromised s— again improving food safety and quality.

 Visibility into the whereabouts of contaminated product enables manufacturers,

distributors and local grocers to issue more narrow recalls — recalls that are focused on
the specific lots that are potentially tainted rather than a broad recall of a specific class of
item. as a result, tainted food can be quickly identified and removed regardless of where
it may be in the supply chain, reducing the opportunity for inadvertent consumption and
the resulting food-related illnesses — and improving the success rate of recalls.

 More reliable data — The ability to automatically collect data by reading an RFID tag
helps to error proof data collection. And the improved accuracy of the data in your
system helps increase product safety.
  brand protection — RFID can help enterprises in the food supply chain prevent brand
damage by providing the information needed to instantly spot and contain incidents
before they can impact sales and brand value. The impact of outbreaks and the effect on
the food industry as a whole cannot be underestimated. In response to recent recalls, 38
percent of consumers stopped buying certain food products in 2007 — a 400 percent
increase over the 9 percent in 2006. of the 38 percent: 71 percent avoided spinach, 16
percent avoided lettuce, 9 percent avoided bagged salads and 8 percent avoided beef. FID
can help enterprises prevent and mitigate incidents, reducing the potential negative
impact on brand equity and sales.

 Reduction in liability — The ability to rapidly identify and remove potentially tainted
food items from the supply chain minimizes the opportunity for foodborne illness — and
the associated liabilities.

 Supply chain efficiency improvements

The same information that helps protect food as it moves through the supply chain also increases
the efficiency of the supply chain, protecting profitability through:

 Loss protection — The ability to move perishables through the supply chain as quickly as
possible helps maximize product shelf life – and prevent shrink due to spoilage.

 Productivity improvements — The automated data capture eliminates the need for
workers to capture information on paper forms, which in turn increases throughput —
existing staff can now process more product per day.

 Substantial reduction in the cost of recalls — Real-time visibility into the exact
whereabouts of any contaminated product enables a targeted recall effort that can be
executed at a fraction of the time and cost associated with a traditional widespread recall.

 Cost-effective regulatory compliance — complying with new government regulations can

be a costly endeavor. Through automated collection of regulatory data and more, RFID
enables businesses to easily comply with new regulations without a substantial impact on
margins.
DEVELOPMENT OF NEW APPROACHES TO SUPPLY CHAIN MANAGEMENT

Examples of recent developments in food preservation technology are

 High pressure processing,

 Food irradiation,
 Pulsed electric fields and pulsed light.

These new technologies enable manufacturers to provide innovative products as well as meet
food safety objectives.

High Pressure Processing: refers to high pressure used for food preservation. "Pressed inside
a vessel exerting 70,000 pounds per square inch or more, food can be processed so that it retains
its fresh appearance, flavor, texture and nutrients while slowing spoilage by killing E.
coli, Salmonella and Listeria pathogens (but not Clostridium botulinum). "Using hydrostatic
pressure, water is pumped into a sturdy closeable steel vessel. Foods of any shape or size are
equally squeezed around its surface area without crushing the food particles. It's effective on
most moist foods, such as fruits, vegetables, sauces and ready-to-eat meats. It can even shell
whole uncooked lobster.The high pressure cycle takes no longer than six minutes, compared to
traditional high-temperature processing that takes an hour or longer, without causing chemical
changes that degrade food quality."It is successful in improving flavor retention and sensory
quality in a range of foods, for example fruit juices, fruit and vegetable purees, processed meat
products, and seafood. The technology is successful also in controlling microbial levels in
many situations, and it provides a good example of “equivalence” to traditional high temperature
heat treatment.
PROFILE OF THE
COMPANY
 McDonald’s
2.1 Overview of the company

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Share on Twitter (opens new window) Share on Facebook (opens new window) Share on
LinkedIn (opens new window) Save Save to myFT FT reporters JANUARY 29, 2015 1 McDonald’s
shook up its leadership this week as it struggled to keep up with changing consumer tastes,
appointing Steve Easterbrook, a veteran of UK high street restaurant chains, to replace Don
Thompson as chief executive. FT reporters around the world take a market-by-market look at
the challenges facing the company. US: left behind by shifts in dining habits McDonald’s faces
perhaps its greatest challenge in its home market. Critics charge that the company has been
unable to cope with fundamental shifts in the restaurant business in recent years, writes Neil
Munshi in Chicago. Upstart rivals have been able to capitalise on consumer demand for food
that is perceived as healthier and made with fresher, natural ingredients. Markets beyond US
China India Japan Russia Europe Latin America McDonald’s has built a global empire based on
the consistency of its products, down to the thickness of fries and the number of pickles on a
sandwich. But the age of the Big Mac and fries has given way to the age of organic kale and
small-batch aioli. In a sign of how drastically the restaurant game has shifted, McDonald’s will
attempt to compete this year by expanding a customisable burger pilot programme to up to
2,000 US outlets, or one out of every seven stores. That will give consumers the chance to add
bacon or mushrooms or caramelised onions to their Quarter Pounder. Compounding
McDonald’s home market challenges are the nationwide protests that have broken out over
raising the minimum wage. The fast-food giant has become the poster child for the fight for a
$15 hourly wage — more than double the national minimum. © Bloomberg A top US labour
regulator recently ruled that the company might be liable for how its franchisees treat
employees, dealing a blow to the entire franchise model. Steve Easterbrook, the incoming chief
executive, confronted just such a challenge in the UK. He turned that market round through a
campaign that included allowing consumers to ask what goes into McDonald’s food and
promoting the upward mobility that so-called “McJobs” afford. But the US is a market roughly
10 times the size of the UK. Turning round the brand on its home turf will be all the harder.
China: food safety concerns undermine brand Food safety comes near the top of any league
table of public concerns in China, so McDonald’s was hit hard when an undercover television
investigation accused the company last July of using a mainland supplier that relabelled expired
meat, writes Patti Waldmeir in Shanghai. McDonald’s said earlier this month that same store
sales in the Asia-Pacific, Middle East and Africa region continued to suffer the effects of the
scandal, dropping 4.8 per cent in the fourth quarter, year on year. “Consumers in China are still
leery of the brand and haven’t really been convinced that McDonald’s has supply chain issues
under control,” said Benjamin Cavender of China Market Research in Shanghai. © Getty Foreign
fast food brands such as McDonald’s and Yum’s KFC have long enjoyed a reputation for
cleanliness, quality and safety on the mainland, which has faced a string of food quality
scandals in recent years. These included the scandal of melamine in infant milk, which killed six
babies and sickened several hundred thousand. But recently, supplier scandals have hit both big
US chains hard, with KFC facing several successive allegations of substandard supplier practices.
Yum Brands was also targeted in the July expired meal allegations. The Shanghai government
responded to the media exposé by closing down the affected factory of Shanghai Husi Food Co,
a subsidiary of US food group OSI, and detaining staff. Problems with food quality have also
coincided with other trends that have challenged western fast-food brands, industry analysts
say. “Fast-food consumers in China have shifted away from their original curiosity about
western fast food, and nowadays they are pickier and more focused on health,” said Shi Jun,
catering industry analyst at Beijing-based Alliance PKU Management. 2,000 Number of
McDonald’s outlets in China. KFC has 4,600 “McDonald’s is facing more pressure from fast-
casual restaurants and Chinese quick-service chains as consumers look at alternatives that they
increasingly view as more healthful and safer,” said Mr Cavender. KFC remains the clear market
leader with 4,600 outlets, more than double the 2,000 McDonald’s. But Dicos — a Taiwanese-
owned fast-food chain strongest in lower-tier cities, with cheaper menus — recently eclipsed
the US burger chain with 2,200 stores. It planned to have nearly 3,000 by the end of last year.
Additional reporting by Zhang Yan in Shanghai India: legal dispute eats away early advantage
McDonald’s ought to be well-positioned to profit from surging demand for convenient, clean
and affordable meals in India. The market for Western-style fast-food is still relatively small, but
growing rapidly as a young population increasingly grabs meals on the go, or celebrates special
occasions by dining out, writes Amy Kazmin in New Delhi. An early Western arrival into India’s
competitive food market, McDonald’s worked for years to overcome a fundamental problem.
Its core product offering — beef burgers — is taboo for India’s Hindu-majority population.
Although it has finally found a recipe to appeal to Indian palates — through ample chicken and
vegetarian offerings — McDonald’s is locked in a bitter legal dispute with an estranged former
partner, which has stymied the chain’s expansion. © Bloomberg McDonald’s is fighting
entrepreneur Vikram Bakshi for control of Connaught Plaza Restaurants, their erstwhile joint
venture, which owns and operates 185 McDonald’s restaurants in north and east India.
McDonald had sought to buy Mr Bakshi out of the venture since 2008, but the two sides had
deep differences on pricing. Simmering tensions finally erupted in 2013, when McDonald’s
ousted Mr Bakshi from his role as managing director of the joint venture, after 18 years. Mr
Bakshi has since filed a lawsuit before India’s Company Law Board, accusing McDonald’s of
mismanagement. Last month, the Delhi High Court issued a stay order, preventing McDonald’s
from proceeding with international arbitration in London, as the company says it is entitled to
do under the terms of its joint venture agreement with Mr Bakshi. Rs14.2bn McDonald’s Indian
revenues last year, trailing local Jubilant’s Rs16.2bn McDonald’s is expanding in India’s
prosperous south and west region, where its other Indian partner, Hardcastle Restaurants, was
converted from a joint venture into a master franchisee in 2010. But McDonald’s dispute with
Mr Bakshi is allowing rivals such as Domino’s, KFC and Subway, to erode its former lead.
McDonald’s was India’s biggest Western fast-food chain in 2008 with revenues of Rs6.6bn,
according to Euromonitor data. That was more than double Domino’s sales of Rs3.2bn. KFC,
with revenues of Rs1.5bn, lagged far behind. McDonald’s revenues in India hit Rs14.2bn last
year. But Yum Brand’s KFC had nearly caught up, with Rs12.5bn in sales. Domino’s, which in
India is operated by Mumbai-listed Jubilant Foodworks, surpassed McDonald’s with revenues of
Rs16.2bn. Japan: consumer backlash against cost cuts McDonald’s Japan had its own
management shake-up in the summer of 2013 when the US head office brought in Sarah
Casanova, a 24-year McDonald’s veteran, to run the local unit. The chain had enjoyed nearly a
decade of strong growth in its second-biggest market. But sales in Japan — with some 3,100
outlets — started slowing as consumers became disgruntled with its service and food offerings,
writes Kana Inagaki in Tokyo. The McDonald’s brand became synonymous with cost cuts and a
push for efficiency, highlighted by the backlash in late 2012 when Japanese stores pulled menus
from its counters to shorten the time taken by customers placing orders. Angry consumers
punished the chain by dragging its sales down for almost all of 2013, excluding May and June. ©
Reuters But instead of stemming the slide in sales, Ms Casanova’s term has been plagued by a
series of troubles that began with a chicken safety scare at its China-based supplier last July.
Delays in imports of US potatoes forced the chain to ration sales of its French fries in December.
The problems were capped by a flood of complaints that came to light this month when objects
— from a human tooth to pieces of vinyl and a bracelet — were found inside its products.
McDonald’s Japan, which is half owned by the US group, now expects its first annual loss in 11
years, totalling Y17bn ($144m), after sales tumbled by double-digits since July. “McDonald’s is
already no longer a must-go place. They must regain consumer trust or else people would just
not be interested in them any more,” said Nomura analyst Kyoichiro Shigemura. Ms Casanova
has promised steps to ensure food safety through increased audits of suppliers. McDonald’s
Japan also plans to remodel its stores and offer a wider line-up of menus, with better pricing.
But analysts say it will be a hard road ahead to restore confidence in a market known for its
finicky and picky consumers. When Ms Casanova appeared at a news conference in July, she
was criticised for failing to appear apologetic enough. Three months later when she spoke
again, she wore a dark suit with her hairstyle in a tight updo. “A new start is always a good
thing,” she said. Russia: burger business caught up in geopolitics McDonald’s has long been
portrayed as a success story in Russia, but over the past six months the fast food company has
fallen foul of deteriorating relations between Moscow and the US, writes Courtney Weaver in
Moscow. In late July, as the EU prepared its strongest sanctions against Russia to date, a
regional branch of Russia’s consumer protection agency suddenly announced that certain
McDonald’s items ranging from its cheeseburgers to Caesar wraps did not meet Russia’s health
safety standards. This was either because they contained evidence of E-coli or because they
contained more carbohydrates and calories than the menu stated, according to the agency. ©
Bloomberg In late August, the agency’s federal branch went further, temporarily shutting down
four McDonald’s outlets, including its flagship location on Moscow’s Pushkin Square —
McDonald’s first ever restaurant in Russia and one of its biggest locations by sales in the world.
By October, 200 out of McDonald’s 440 Russian restaurants were under government
investigation, with as many as nine McDonald’s outlets closed during the period. The Russian
agency, known as Rospotrebnadzor, has since finished its inspections and all the McDonald’s
outlets that were closed have been reopened. However, the difficulties for McDonald’s in
Russia are continuing. The fast-food group is now the subject of dozens of Russian court cases
related to the agency’s findings, the FT’s Russian sister paper Vedomosti reported on Thursday.
200 Number of McDonald’s Russian restaurants under investigation, out of a total of 440 Some
of the court complaints relate to McDonald’s lack of a centralised laundromat for its
employees’ uniforms, while others take issue with the layout of McDonald’s kitchens and the
separation of different food products. McDonald’s counters that the layout required by
Rospotrebnadzor does not reflect modern food industry standards when many food products
are processed. Other court cases relate to McDonald’s alleged mislabelling of its food products.
Russia’s consumer protection agency and health ministry have repeatedly insisted that the
McDonald’s investigations have nothing to do with the geopolitical backdrop. But in the past
few months, McDonald’s has figured in close to 100 Russian court cases, Vedomosti reports. In
the previous seven years, it only figured in 10. Latin America: regional woes hit revenues Paula,
a McDonald’s worker in São Paulo, says she cannot think of anything worse than eating
hamburgers for lunch every day, writes Samantha Pearson in São Paulo. “You saw what
happened to the man in that documentary from America, right?” she said, referring to Super
Size Me, the 2004 documentary in which film-maker Morgan Spurlock eats only at McDonald’s
for a month. © Bloomberg However, after a string of complaints, Paula and the rest of Brazil’s
McDonald’s employees now have the option of eating a typical Brazilian meal of rice, beans and
beef in their breaks instead. The option is even available to customers for R$23 (US$9) if they
look hard enough, she said, pointing to the small print at the bottom of the menu. Catering to
local tastes in the region, however, is not the only challenge for Arcos Dorados, the Buenos
Aires-based company that owns the exclusive right to operate McDonald’s restaurants in 20
Latin American and Caribbean countries. In the three months to September 30, the company
recorded consolidated revenues of $904m, down 11.5 per cent from the previous year. Arcos
accounts for only about 6 per cent of McDonald’s global sales. The problems at Arcos are
largely related to local competition and the macroeconomic environment of its five main
markets, said Martha Shelton, equity analyst at Itaú BBA. Lex on McDonald’s Buffett won’t snap
up McDonald’s. Someone should Continue reading Brazil, Argentina, Mexico, Puerto Rico and
Venezuela make up 80 per cent of the company’s sales, in that order, she said. In Venezuela,
Arcos has been hit by the country’s deepening economic crisis and shortfalls of basic goods —
McDonald’s restaurants across the country even ran out of fries this month, according to local
media. In Argentina, high inflation has weighed on profits. “We expect Arcos Dorados’ growth
strategies to reflect efforts in minimising exposures to these two countries,” said Moody’s in a
note. In Brazil, which accounts for more than half of Arcos’s sales, currency depreciation and a
slowdown in consumption, even during the World Cup last year, have eroded profits. In Mexico,
Arcos has also struggled to compete with the informal market — the man selling tacos on the
street corner who even extends credit to his best customers. “That will always cause difficulties
for hamburger chains,” said Itaú’s Ms Shelton. Europe: ideas laboratory hit by economic
downturn Steve Easterbrook’s reward for his successful stint at the head of the UK division was
to be appointed president of McDonald’s Europe. When he quit in 2011 to head PizzaExpress,
Europe was MacDonald’s fastest-growing region, writes Roger Blitz in London. Commonly a
laboratory for the company’s new ideas, McDonald’s Europe was attracting customers with
high-end beef, breakfast and garden wraps. © AFP Mr Easterbrook’s strategy suited recession-
hit Europe. Cash-poor Europeans swallowed their misgivings about the godfather of American-
imported fast-food culture and stepped gingerly inside McDonald’s restaurants — lured by
some tailored offerings. France got a McBaguette, and gave McDonald’s its most profitable
international market. Sales across more than 1,200 restaurants in France topped $5bn. But its
most recent results suggest that, as in other markets, many European consumers are now spoilt
for choice when it comes to fast food. Fourth-quarter same-store sales dropped 1.1 per cent
and operating income was down 14 per cent. While the UK was doing well, the company was
suffering from “consumer confidence issues” in Russia and Ukraine and weakness in France and
Germany. Competition comes from top-end burger chains, plus fast-food businesses focusing
on specialities such as Japanese and Mexican food. McDonald’s is still expanding across Europe,
pushing up actual sales. But the decline in like-for-like sales means that the performance overall
is “fragile”, said Euromonitor analyst Karla Rendle. “The poor economic climate in countries
such as Greece and Italy will have also impacted McDonald’s sales,” she added. “McDonald’s
three main challenges — brand image, market positioning and menu changes — are the same
for Europe as they are for the US and the rest of the world.” Return to the top of the page
Copyright The Financial Times Limited 2018. All rights reserved.

Save to myFT FT reporters JANUARY 29, 2015 1 McDonald’s shook up its leadership this week as
it struggled to keep up with changing consumer tastes, appointing Steve Easterbrook, a veteran
of UK high street restaurant chains, to replace Don Thompson as chief executive. FT reporters
around the world take a market-by-market look at the challenges facing the company. US: left
behind by shifts in dining habits McDonald’s faces perhaps its greatest challenge in its home
market. Critics charge that the company has been unable to cope with fundamental shifts in the
restaurant business in recent years, writes Neil Munshi in Chicago. Upstart rivals have been able
to capitalise on consumer demand for food that is perceived as healthier and made with
fresher, natural ingredients. Markets beyond US China India Japan Russia Europe Latin America
McDonald’s has built a global empire based on the consistency of its products, down to the
thickness of fries and the number of pickles on a sandwich. But the age of the Big Mac and fries
has given way to the age of organic kale and small-batch aioli. In a sign of how drastically the
restaurant game has shifted, McDonald’s will attempt to compete this year by expanding a
customisable burger pilot programme to up to 2,000 US outlets, or one out of every seven
stores. That will give consumers the chance to add bacon or mushrooms or caramelised onions
to their Quarter Pounder. Compounding McDonald’s home market challenges are the
nationwide protests that have broken out over raising the minimum wage. The fast-food giant
has become the poster child for the fight for a $15 hourly wage — more than double the
national minimum. © Bloomberg A top US labour regulator recently ruled that the company
might be liable for how its franchisees treat employees, dealing a blow to the entire franchise
model. Steve Easterbrook, the incoming chief executive, confronted just such a challenge in the
UK. He turned that market round through a campaign that included allowing consumers to ask
what goes into McDonald’s food and promoting the upward mobility that so-called “McJobs”
afford. But the US is a market roughly 10 times the size of the UK. Turning round the brand on
its home turf will be all the harder. China: food safety concerns undermine brand Food safety
comes near the top of any league table of public concerns in China, so McDonald’s was hit hard
when an undercover television investigation accused the company last July of using a mainland
supplier that relabelled expired meat, writes Patti Waldmeir in Shanghai. McDonald’s said
earlier this month that same store sales in the Asia-Pacific, Middle East and Africa region
continued to suffer the effects of the scandal, dropping 4.8 per cent in the fourth quarter, year
on year. “Consumers in China are still leery of the brand and haven’t really been convinced that
McDonald’s has supply chain issues under control,” said Benjamin Cavender of China Market
Research in Shanghai. © Getty Foreign fast food brands such as McDonald’s and Yum’s KFC
have long enjoyed a reputation for cleanliness, quality and safety on the mainland, which has
faced a string of food quality scandals in recent years. These included the scandal of melamine
in infant milk, which killed six babies and sickened several hundred thousand. But recently,
supplier scandals have hit both big US chains hard, with KFC facing several successive
allegations of substandard supplier practices. Yum Brands was also targeted in the July expired
meal allegations. The Shanghai government responded to the media exposé by closing down
the affected factory of Shanghai Husi Food Co, a subsidiary of US food group OSI, and detaining
staff. Problems with food quality have also coincided with other trends that have challenged
western fast-food brands, industry analysts say. “Fast-food consumers in China have shifted
away from their original curiosity about western fast food, and nowadays they are pickier and
more focused on health,” said Shi Jun, catering industry analyst at Beijing-based Alliance PKU
Management. 2,000 Number of McDonald’s outlets in China. KFC has 4,600 “McDonald’s is
facing more pressure from fast-casual restaurants and Chinese quick-service chains as
consumers look at alternatives that they increasingly view as more healthful and safer,” said Mr
Cavender. KFC remains the clear market leader with 4,600 outlets, more than double the 2,000
McDonald’s. But Dicos — a Taiwanese-owned fast-food chain strongest in lower-tier cities, with
cheaper menus — recently eclipsed the US burger chain with 2,200 stores. It planned to have
nearly 3,000 by the end of last year. Additional reporting by Zhang Yan in Shanghai India: legal
dispute eats away early advantage McDonald’s ought to be well-positioned to profit from
surging demand for convenient, clean and affordable meals in India. The market for Western-
style fast-food is still relatively small, but growing rapidly as a young population increasingly
grabs meals on the go, or celebrates special occasions by dining out, writes Amy Kazmin in New
Delhi. An early Western arrival into India’s competitive food market, McDonald’s worked for
years to overcome a fundamental problem. Its core product offering — beef burgers — is taboo
for India’s Hindu-majority population. Although it has finally found a recipe to appeal to Indian
palates — through ample chicken and vegetarian offerings — McDonald’s is locked in a bitter
legal dispute with an estranged former partner, which has stymied the chain’s expansion. ©
Bloomberg McDonald’s is fighting entrepreneur Vikram Bakshi for control of Connaught Plaza
Restaurants, their erstwhile joint venture, which owns and operates 185 McDonald’s
restaurants in north and east India. McDonald had sought to buy Mr Bakshi out of the venture
since 2008, but the two sides had deep differences on pricing. Simmering tensions finally
erupted in 2013, when McDonald’s ousted Mr Bakshi from his role as managing director of the
joint venture, after 18 years. Mr Bakshi has since filed a lawsuit before India’s Company Law
Board, accusing McDonald’s of mismanagement. Last month, the Delhi High Court issued a stay
order, preventing McDonald’s from proceeding with international arbitration in London, as the
company says it is entitled to do under the terms of its joint venture agreement with Mr Bakshi.
Rs14.2bn McDonald’s Indian revenues last year, trailing local Jubilant’s Rs16.2bn.

Kentucky Fried Chicken

About the Company

KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain
of fast food restaurants based in Louisville, Kentucky. KFC is a brand and operating
segment, called a "concept" of Yum! Brands since 1997 when that company was spun off
from PepsiCo as Tricon Global Restaurants Inc. The restaurants are known as Poulet Frit
Kentucky or PFK in the province of Quebec in Canada. In France, however, the chain is
known as KFC.

KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its
primary focus is fried chicken, KFC also offers a line of roasted chicken products, side
dishes and desserts. Outside North America, KFC offers beef based products such as
hamburgers or kebabs, pork based products such as ribs and other regional fare.

The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in
1952, though the idea of KFC's fried chicken actually goes back to 1930. The company
adopted the abbreviated form of its name in 1991. Starting in April 2007, the company
began using its original name, Kentucky Fried Chicken, for its signage, packaging and
advertisements in the United States as part of a new corporate re-branding program newer
and remodeled restaurants will have the new logo and name while older stores will
continue to use the 1980s signage. Additionally, Yum! Continues to use the abbreviated
name freely in its advertising.
Products

The famous paper bucket that KFC uses for its larger sized orders of chicken and has come to
signify the company was originally created by Wendy's restaurants founder Dave Thomas. Thomas
was originally a franchisee of the original Kentucky Fried Chicken and operated several outlets in
the Columbus, Ohio area. His reasoning behind using the paper packaging was that it helped keep
the chicken crispy by wicking away excess moisture. Thomas was also responsible for the creation
of the famous rotating bucket sign that came to be used at most KFC locations in the US.

Menu items
KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried
pieces of chicken made with original recipe. The other chicken offering, extra crispy, is made using a
garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial
kitchen type machine.

Kentucky Grilled Chicken - This marinated grilled chicken is targeted towards health-conscious
customers. It features marinated breasts, thighs, drumsticks, and wings that are coated with the
Original Recipe seasonings before being grilled. It has less fat, calories, and sodium than the
Original Recipe fried chicken. Introduced in April 2009.

Discontinued products
The Colonel's Rotisserie Gold – This product was introduced in the 1990s as a response to the
Boston Market chain's roasted chicken products, and a healthier mindset of the general public
avoiding fried food. Purportedly made from a "lost" Col. Sanders recipe, it was sold as a whole
roaster or a half bird.[28]

Tender Roast Chicken – This product was an off-shoot of 'The Colonel's Rotisserie Gold'. Instead of
whole and half birds, customers were given quarter roasted chicken pieces. For a time, customers
could request chicken "original", "Extra Tasty Crispy", or "Tender Roast".

Smokey Chipotle – Introduced in April 2008. The chicken was dipped in chipotle sauce then
doubled breaded and fried. It has been discontinued since August 2008.
Nutritional value

KFC formerly used partially hydrogenated oil in its fried foods. This oil contains relatively
high levels of trans fat, which increases the risk of heart disease. The Center for Science in
the Public Interest (CSPI) filed a court case against KFC, with the aim of making it use other
types of oils or make sure customers know about Trans fat content immediately before
they buy food.

In October 2006, KFC announced that it would begin frying its chicken in trans fat-free oil. This
would also apply to their potato wedges and other fried foods, however, the biscuits.

Advertising

One of KFC's latest advertisements is a commercial advertising its "wicked crunch box
meal". The commercial features a fictional black metal band called "Hellvetica" performing
live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC
eating the "wicked crunch box meal" and saying "Oh man that is hot".

In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and
began to reappear on company marketing literature and food packaging, as well as some
restaurant signage.

KFC Business Strategy

KFC fast-food chains are currently under the restaurant division of PepsiCo Incorporated.
Some major threats include the changing attitudes of society toward healthier eating
habits, KFC has more than 9,800 outlets located in 77 countries. In marketing, KFC
restaurants are not restricted from locating within close proximity of other KFC
restaurants. There are two alternative strategies for KFC. The first strategy involves
keeping PepsiCo beverage division and snack foods division together, and a divestiture of
PepsiCo restaurant division; selling Taco Bell, Pizza Hut, and KFC.

Present Situation

The organization is currently structured with two divisions under PepsiCo. David Novak is
president of KFC. John Hill is Chief Financial Officer and Colin Moore is the head of
Marketing. Peter Waller is head of franchising while Olden Lee is head of Human Resources.
KFC is part of the two PepsiCo divisions, which are PepsiCo Worldwide Restaurants and
PepsiCo Restaurants International. Both of these divisions of PepsiCo are based in Dallas.

Strengths

Strengths can be found internally in a company and can be used to the company’s
advantage. The strengths identified are as follows:

1. KFC's secret recipe.

The secret recipe has long been a source of advertising, and allowed KFC to set itself apart.
Also, KFC was the first chain to enter the fast-food industry, just before McDonald's, which
opened its first store a year later, and the "secret recipe" was the initial home replacement
strategy.

2. Name recognition and reputation.

KFC's early entrance into the fast-food industry in 1954 allowed KFC to develop strong
brand name recognition and a strong foothold in the industry. The Colonel is KFC's original
owner and a very recognizable figure, both in the U.S. and internationally, in their new logo.
In fact, in the fourth annual LogoValue Survey, done by The Schecter Group, the KFC logo
was the only one which significantly enhance the brand's image .
3. PepsiCo's success with the management of fast food chains. PepsiCo acquired Pizza
Hut in 1977, and Taco Bell in 1978. PepsiCo used many of the same promotional strategies
that it has used to market soft drinks and snack food. By the time PepsiCo bought KFC in
1986, the company already dominated two of the four largest and fastest-growing
segments of the fast food industry.

4. Traditional employee loyalty.

"KFC's culture was built largely on Colonel Sanders' laid back approach to management"
(Wright, p.433). Before the acquisition of KFC by PepsiCo, employees at KFC enjoyed good
benefits, a pension, and could receive help with other non-income needs. This kind of
"personal" human resources management makes for a loyal workforce.

5. Improving operating efficiencies by reducing overhead and other operating costs

can directly affect operating profit.

Due to the strong competition in the US, the fast-food chains are reluctant to raise prices to increase
profit. Many of the chains are turning to operating efficiencies to increase profit. For many
companies, operating efficiencies are achieved through improvements in customer service, cleaner
restaurants, faster and friendlier ser
 DOMINO’S

SIZE OF THE MARKET

Domino's Pizza is one of the biggest and fastest growing international food joints in South Asia.
The very first Domino's Pizza outlet in India opened in Jan, 1996 at New Delhi. Today, Domino's
Pizza India has become a wide network of Pizza delivery and food chain. There are close to 220
outlets in 42 cities of India and the brand is the top most among the food delivery business.
Domino’s Pizza outlets can be seen at major locations of Delhi and NCR. Their home delivery is
free with a guarantee of “Thirty Minutes Nahi to Free”. Although they are expert in delivering
Pizzas on time, their eating joints and outlets are also good. We plan to have a total of 500
stores in 75-80 cities by 2010 to 2011. It would entail an investment of Rs 200 million during the
period

MARKET GROWTH

During last four months, dominoes have opened outlets in Jammu, Panipat, Surat, Baroda,
Nashik, Trivandum, Meerut and Patiala. While earlier, 70 percent of our business used to be in
metros and mini-metros, now the ratio is 50:50 between big cities and smaller Tier II and III
cities. Domino’s Pizza is expanding its base in India by opening 500 outlets to add to its current
tally of 156 outlets, across 50 cities in India by 2011 with an investment of Rs.1, 000 crore.

MARKET STRATEGIES

 Promotional and Advertisement Campaigns(Coupons and discounts)

 The '30 Minutes' Promise
 Use of Technology(Digital interactive Television, Internet on the PC, Mobile telephony)
 Premium Pricing Strategy
 Indian fast food industry and entry of multinational players
 Distribution strategies of fast food chains in India
MARKET SHARE

The organized pizza market in India is worth Rs.500 crore and Domino’s has a substantial 45%
market share, and registered a healthy growth of 60% over last year. The main target for new
outlets shall be metro cities though Tier II cities would also receive a fair amount of attention.
Currently Domino’s sells around 35,000 pizza every day, of which around 1% are given free on
account of its “30 minutes or free” model. 65 percent of its revenue comes from home delivery
service; around 35 percent is from sales in premise.

COMPETITORS

Fast food is one of the world's fastest growing food types. It now accounts for roughly half of all
restaurant revenues in the developed countries and continues to expand there and in many
other industrial countries in the coming years. But some of the most rapid growth is occurring
in the developing world; where it's radically changing the way people eat. People buy fast food
because it's cheap, easy to prepare, and heavily promoted. This paper aims at providing
information about fast food industry, its trend, reason for its emergence and several other
factors that are responsible for its growth. India is a developing country with 2 percent of organized
and 98 percent of unorganized sector. So most of the fast foods came into Indian market as
India has a high growth in every sector. Some of the competitors of domino’s are

 McDonald's
 Pizza Hut
 Barista
 Coffee Day

On December 9, 1960, Tom Monaghan and his brother, James, took over the operation of
DomiNick's, an existing location of a small pizza restaurant chain that had been owned by
Dominick DiVarti, at 507 Cross Street (now 301 West Cross Street) [9] in Ypsilanti, Michigan [10],
near Eastern Michigan University.[11] The deal was secured by a $500 down payment, and the
brothers borrowed $900 to pay for the store.[12] The brothers planned to split the work hours
evenly, but James did not want to quit his job as a full-time postman to keep up with the
demands of the new business. Within eight months, James traded his half of the business to
Tom for the Volkswagen Beetle they used for pizza deliveries.[12] By 1965, Tom Monaghan had
purchased two additional pizzerias; he now had a total of three locations in the same county.
Monaghan wanted the stores to share the same branding, but the original owner forbade him
from using the DomiNick's name. One day, an employee, Jim Kennedy, returned from a pizza
delivery and suggested the name "Domino's" [9] Monaghan immediately loved the idea and
officially renamed the business Domino's Pizza, Inc. in 1965.[12]
The company logo originally had three dots, representing the three stores in
1965.[12] Monaghan planned to add a new dot with the addition of every new store, but this
idea quickly faded, as Domino's experienced rapid growth.[12] Domino's Pizza opened its first
franchise location in 1967[13] and by 1978, the company expanded to 200 stores.[14] In 1975,
Domino's faced a lawsuit by Amstar Corporation, the maker of Domino Sugar, alleging
trademark infringement and unfair competition. On May 2, 1980, the Fifth Circuit Court of
Appeals in New Orleans found in favor of Domino's Pizza.[15]
Dominos Pizza in Tuxtla Gutiérrez, Chiapas, Mexico

Domino's outlet in Himayatnagar, Hyderabad, Telangana, India

On May 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba,
Canada.[16] That same year, Domino's opened its 1,000th store, its first in Vancouver,
Washington. In 1985, the chain opened their first store in the United Kingdom in Luton.[17] Also,
in 1985, Domino's opened their first store in Tokyo, Japan. In 1993, they became the second
American franchise to open in the Dominican Republic and the first one to open in Haiti, under
the direction of entrepreneur Luis de Jesús Rodríguez.[18] By 1995, Domino's had expanded to
1,000 international locations. In 1997, Domino's opened its 1,500th international location,
opening seven stores in one day across five continents.[19] By 2014, the company had grown to
6,000 international locations and was planning to expand to pizza's birthplace, Italy; this was
achieved on October 5, 2015, in Milan, with their first Italian location. CEO Patrick Doyle, in May
2014, said the company would concentrate on its delivery model there.[20]
In February 2016, Domino's opened its 1,000th store in India.[21]
Domino's Pizza chose to use its traditional delivery-based business model in China, neither
altering its flavors nor reducing the sizes of pizzas,[22] and promising a 30-minute delivery
time.[23] The delivery time promise failed due to Chinese automobile traffic patterns stymieing
the delivery operations.[23] The large pizza sizes prevented Chinese people from using knives
and forks to eat them,[22] and takeout services were unpopular with Chinese people due to
cultural reasons.[24] Savio S. Chan (Chinese: 陳少宏; pinyin: Chén Shàohóng) and Michael
Zakkour, authors of China's Super Consumers: What 1 Billion Customers Want and How to Sell it
to Them, wrote that Domino's "failed miserably" in its strategy,[23] resulting in the company
being "basically" irrelevant in China, with 40 restaurants as of 2014.[22] By January 2014, the
company introduced small restaurants in the China market. Jamie Fullerton of Vice stated that
these restaurants served "solid, mildly overpriced pizzas" and did not have unique-to-China
menu items.[25]
Domino's Pizza in the Nieuw-Vennep, The Netherlands

In 1998, after 38 years of ownership, Domino's founder Tom Monaghan announced his
retirement, sold 93 percent of the company to Bain Capital, Inc. for about $1 billion, and ceased
being involved in day-to-day operations of the company.[26] A year later, the company
named Dave Brandon as its CEO.[27]

Domino's Pizza logo used from 1996 until September 2012 in major English-speaking countries,
and still used in many others

In 2004, after 44 years as a privately held company, Domino's began trading common stock on
the New York Stock Exchangeunder the ticker symbol "DPZ".[28] Industry trade publication Pizza
Today magazine named Domino's Pizza "Chain of the Year" in 2003, 2010, and 2011.[29][30][31] In
a simultaneous celebration in January 2006, Domino's opened its 5,000th U.S. store in Huntley,
Illinois, and its 3,000th international store in Panama City, Panama, making 8,000 total stores
for the system.[32] In August 2006, the Domino's location in Tallaght, Dublin, Ireland, became
the first store in Domino's history to hit a turnover of $3 million (€2.35 million) per year. [33] As
of September 2006, Domino's has 8,200+ stores worldwide, which totaled $1.4 billion in gross
income.
In 2007, Domino's introduced its Veterans Delivering the Dream franchising program and also
rolled out its online and mobile ordering sites.[14] In 2008, Domino's introduced the Pizza
Tracker, an online application that allows customers to view the status of their order in a real
time progress bar.[35] The first Domino's with a dining room opened in Stephenville, Texas,
giving the customers the option to either eat in or take their pizza home. Since 2005, the voice
of Domino's Pizza's US phone ordering service has been Kevin Railsback.[36]
In a 2009 survey of consumer taste preferences among national chains by Brand Keys, Domino's
was last — tied with Chuck E. Cheese's. In December that year, Domino's announced plans to
entirely reinvent its pizza. It began a self-critical ad campaign in which consumers were filmed
criticizing the then-current pizza's quality and chefs were shown developing a new
pizza.[37][38]The new pizza was unveiled that same month. The following year, 2010 and
Domino's 50th anniversary, the company hired J. Patrick Doyle as its new CEO and experienced
a 14.3% quarterly gain. While admitted not to endure, the success was described by Doyle as
one of the largest quarterly same-store sales jumps ever recorded by a major fast-food
chain.[39][40]
In 2011, Domino’s launched a billboard advertising in New York's Times Square which displayed
real time comments from customers, including good, neutral and bad comments.[41]
In 2015, Domino's unveiled a "pizza car" that can carry 80 pizzas, sides, 2-liter bottles of soda,
and dipping sauces.[42] It also has a 140-degree oven on board and is more fuel efficient than a
standard delivery car. Officially named the Domino's DXP, the car is a Chevrolet
Spark customized by Roush Performance. Once each car reaches 100,000 miles, it will be retired
and returned to Roush, where it will be returned to stock form.[43]
In 2016, Domino’s cooperated with Starship Technologies and applied self-driving robots to
deliver pizzas in specific Germanand Dutch cities.[44] In 2016, Domino's in New
Zealand delivered the world's first pizza delivery by unmanned aerial vehicle using the DRU
Drone by Flirety.[45]
In February 2017, Domino's launched a wedding registry with gifts delivered in the form of
Domino's eGift cards.[46] Customers have the option of signing up for Domino's pizza package to
be served for the event.[47]
In March 2017, Domino's announced a pilot project in Dutch and German cities using delivery
robots to deliver food within a one-mile radius of stores in partnership with Starship
Technologies.[48]
In August 2012, Domino's Pizza changed their name to simply Domino's to emphasize their
variety of non-pizza products such as chicken wings, apple pies, lasagna, and pasta. At the same
time, Domino's introduced a new logo that removed the blue rectangle and text under the
domino in the logo, and changed the formerly all-red domino to be blue on the side with two
dots and red on the side with one dot.[49][50]
A Creamy Bacon pizza from Domino's in the Netherlands

The Domino's menu varies by region. The current Domino's menu in the United States features
a variety of Italian-Americanmain and side dishes. Pizza is the primary focus, with traditional,
specialty, and custom pizzas available in a variety of crust styles and toppings. In 2011,
Domino's launched artisan-style pizzas. Additional entrees include pasta, bread bowls,
and oven-baked sandwiches. The menu offers chicken and bread sides, as well as beverages
and desserts.[51]
From its founding until the early 1990s, the menu at Domino's Pizza was kept simple relative to
other fast food restaurants, to ensure efficiency of delivery.[52] Historically, Domino's menu
consisted solely of one style of pizza crust in two sizes (12-inch and 16-inch), 11 toppings, and
Coca-Cola as the only soft drink option.[53]
A "make line" at a Domino's

The first menu expansion occurred in 1989, with the debut of Domino's deep dish or pan pizza.
Its introduction followed market research showing that 40% of pizza customers preferred thick
crusts. The new product launch cost approximately $25 million, of which $15 million was spent
on new sheet metal pans with perforated bottoms.[54] Domino's started testing extra-large size
pizzas in early 1993, starting with the 30-slice, yard-long "The Dominator".
Domino's tapped into a market trend toward bite-size foods with spicy Buffalo Chicken Kickers,
as an alternative to Buffalo Wings, in August 2002. The breaded, baked, white-meat fillets,
similar to chicken fingers, are packaged in a custom-designed box with two types of sauce to
"heat up" and "cool down" the chicken.[56][57]
In August 2003, Domino's announced its first new pizza since January 2000, the Philly Cheese
Steak Pizza. The product launch also marked the beginning of a partnership with the National
Cattlemen's Beef Association, whose beef Check-Off logo appeared in related
advertising.[58] Domino's continued its move toward specialty pizzas in 2006, with the
introduction of its Brooklyn Style Pizza, featuring a thinner crust, cornmeal baked in to add
crispness, and larger slices that could be folded in the style of traditional New York-style
pizza.[59]
In 2008, Domino's once again branched out into non-pizza fare, offering oven-baked
sandwiches in four styles, intended to compete with Subway's toasted submarine sandwiches.
Early marketing for the sandwiches made varied references to its competition, such as offering
free sandwiches to customers named "Jared," a reference to Subway's spokesman of the same
name.[60]
The company introduced its American Legends line of specialty pizzas in 2009, featuring 40%
more cheese than the company's regular pizzas, along with a greater variety of
toppings.[61] That same year, Domino's began selling its BreadBowl Pasta entree, a lightly
seasoned bread bowl baked with pasta inside, and the Lava Crunch Cake dessert, composed of
a crunchy chocolate shell filled with warm fudge.[62] Domino's promoted the dessert by flying in
1,000 cakes to deliver at Hoffstadt Bluffs Visitor Center near Mount St. Helens in Washington
state.[63]
In 2010, shortly after the company's 50th anniversary, Domino's changed its pizza recipe "from
the crust up", making significant changes in the dough, sauce, and cheese used in their
pizzas.[64] Their advertising campaign admitted to earlier problems with the public perception of
Domino's product due to taste issues.[65][66]
In September 2012, Domino's announced it was going to roll out a pan pizza on September 24,
2012.[67] Following this move, the Deep Dish pizza was discontinued after 23 years of being on
the menu.
In December 2013, Domino's Pizza, in Israel, unveiled its first vegan pizza, which uses a soy-
based cheese substitute.[68][69]
After a stock low point in late 2009, the company's stock had risen 700 percent in the five years
preceding February 2016.[70] Even as the American economy has suffered and unemployment
has risen, Domino's has seen its sales rise dramatically through its efforts to rebrand and retool
its pizza.[71]
Domino's management is led by J. Patrick Doyle, CEO from March 2010, formerly president of
Domino's USA. Previous chief executive Dave Brandon remains Chairman.[72] Among 11
executive vice presidents are Jeffrey Lawrence, CFO; Stan Gage, Team USA; Scott Hinshaw,
Franchise Operations and Development; and Kenneth Rollin, General Counsel.[73] Domino's
operations are overseen by a board of directors led by Brandon. Other members of the board
are J. Patrick Doyle, Andy Ballard, Andrew Balson, Diana Cantor, Richard Federico, James
Goldman, Bud Hamilton, and Gregory Trojan.[74]
Charitable activities[edit]
In 2001, Domino's launched a two-year national partnership with the Make-A-Wish Foundation
of America. That same year, company stores in New York City and Washington, D.C. provided
more than 12,000 pizzas to relief workers following the September 11 attacks on the World
Trade Center and The Pentagon. Through a matching funds program, the corporation donated
$350,000 to the American Red Cross' disaster relief effort.[19] In 2004, Domino's began a
partnership with St. Jude Children's Research Hospital, participating in the hospital's "Thanks
and Giving" campaign since the campaign began in 2004, and raising $5.2 million in 2014.[75]

Arie Luyendyk's Lola-Chevroletwhich won the 1990 Indianapolis 500for Doug Shierson Racing

In the 1980s, Domino's was well known for its advertisements featuring the Noid. That concept
was created by Group 243 Inc. who then hired Will Vinton Studios to produce the television
commercials that they created. The catchphrase associated with the commercials was "Avoid
the Noid." The Noid was discontinued after Kenneth Lamar Noid, believing the mascot to be an
imitation of him, held two Domino's employees hostage in Chamblee, Georgia.[76] The
employees escaped while Noid ate a pizza he had ordered.[77] Noid was eventually diagnosed
with paranoid schizophrenia and acquitted due to insanity, and later committed
suicide.[78][79] The Noid was briefly brought back for a week in 2011 in an arcade-style game on
the Domino's Facebook page. The person with the top score received a coupon for a free
pizza.[80]
Due to a glitch on the Domino's website, the company gave away nearly 11,000 free medium
pizzas in March 2009. The company had planned the campaign for December 2008 but dropped
the idea and never promoted it. The code was never deactivated, however, and resulted in the
free giveaway of the pizzas across the United States after someone discovered the promotion
on the website by typing in the word "bailout" as the promotion code and then shared it with
others on the Internet. Domino's deactivated the code on the morning of March 31, 2009, and
promised to reimburse store owners for the pizzas.[81]
Domino's sponsored CART's Doug Shierson Racing, which was driven by Arie Luyendyk and won
the 1990 Indianapolis 500. In 2003, Domino's teamed up with NASCAR for a multi-year
partnership to become the "Official Pizza of NASCAR."[82] Domino's also sponsored Michael
Waltrip Racing and driver David Reutimann during the 2007 season in the NASCAR Sprint Cup
Series.
30-minute guarantee[edit]
Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas
within 30 minutes of placing an order or they would receive the pizzas free. The guarantee was
reduced to $3 off in the mid-1980s. In 1992, the company settled a lawsuit brought by the
family of an Indiana woman who had been killed by a Domino's delivery driver, paying the
family $2.8 million. In another 1993 lawsuit, brought by a woman who was injured when a
Domino's delivery driver ran a red light and collided with her vehicle, the woman was awarded
nearly $80 million but accepted a payout of $15 million.[83] The guarantee was dropped that
same year because of the "public perception of reckless driving and irresponsibility", according
to then-CEO Tom Monaghan.[83]
In December 2007, Domino's introduced a new slogan, "You Got 30 Minutes," alluding to the
earlier pledge but stopping short of promising delivery in half an hour.[84]
The company continues to offer the 30-minute guarantee for orders placed in its stores situated
in Colombia, Vietnam, Mexico, China, and Turkey.
In Malaysia and Singapore, a refund is instead substituted with a "Free Regular Pizza
Voucher".[85][86]
In India, the guarantee is for ₹300 ($5) and is valid for an order of less than four pizzas.

Franchises[edit]
Domino's Pizza World Map, with the company's footprint indicated in red

Domino's Pizza currently has locations in 85 countries. It has its stores in 5,701 cities worldwide
(2,900 international and 2,800 in the US). Domino's had approximately 11,000 stores as of the
first quarter of 2014, with 774 in the UK, 4,986 in the US, and 1010 in India. [87][88] In most cases,
Domino's has master franchise agreements with one company per country, but three
companies have acquired multiple master franchise agreements, covering multiple countries:

 The rights to own, operate, and franchise branches of the chain in Australia, New
Zealand, France, Belgium, the Netherlands, and Monaco are currently owned by
Australian Domino's Pizza Enterprises, having bought the master franchises from the parent
company in 1993 (Australian and New Zealand franchises) and 2006 (European franchises).
 The master franchises for the UK and Ireland were purchased in 1993 by the British publicly
listed Domino's Pizza Group, which acquired the master franchise for Germany in 2011 and
Switzerland, Liechtenstein, and Luxembourg in August 2012 by buying the Swiss master
franchise holder, with an option to acquire the Austrian master franchise as well. Sweden
opened its first Domino's near the Mobilia shopping mall in Malmö in December
2016.[89][90][91]
 The master franchises for India, Bangladesh, Nepal, and Sri Lanka, are currently owned by
the Indian company Jubilant FoodWorks. India is the largest international market for
Domino's outside its home market. The company operates 1,004 stores across 230 Indian
cities as of February 11, 2016. Apart from the United States, India is the only country to
have over 1,000 Domino's outlets. Indian pizza flavors such as paneer pizza, chicken tikka
masala pizza, and kheema do pyaza pizza have been sold in other international markets.
 CAFÉ COFFEE DAY

Café Coffee Day is a chain of coffee shops in India having its headquarters in Chikkamagaluru,
Karnataka. A division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), it is
commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in
Bangalore, and today has the largest cafe retail chain in India – with over 800 cafes in 112 cities.

Large number of coffee day cafes are located in Bangalore. The cafe chain has had much
success riding, and to some extent creating, the cafe culture wave that swept across
metropolitan India following strong economic growth resulting in an increase in youth spending
power. It has even tied up with World Space and Micro sense to enable its cafes with satellite
radio and Wi-Fi, respectively. Its first Wi-Fi cafe was opened on Lavelle Road, Bangalore.

Café Coffee Day sources coffee from 5000 acres of coffee estates, the second largest in Asia,
that is owned by a sister concern and from 11,000 small growers. It is one of India’s leading
coffee exporters, with clients across the USA, Middle East, Europe and Japan.

With its roots in Chikmagalur, the home to some of the best Indian coffees, Coffee Day has its
business spanning the entire value chain of coffee consumption in India. Its different divisions
include: Coffee Day Fresh 'n' Ground (which owns 450 coffee bean and powder retail outlets),
Coffee Day Xpress (which owns 730 Coffee Day kiosks), Coffee Day Takeaway (which owns 9000
vending machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee)
division. It is entering the European market by opening two Cafés in Austria as well, making
forays into Pakistan and Germany to set up cafes abroad. The strategy CCD has adapted is to
place a cafe in every possible location where some business can be generated. So in Bangalore,
in the main shopping district, there are six outlets in a 2 km radius and overall 120 cafes in
Bangalore alone.

Another model which CCD has adapted is to be present in educational institutions and
corporate campuses either in the form of detailed cafes or its economical model of CCD
express.
 These innovative strategies have ensured that the competition is at bay and ensured CCD's
dominance in the Indian market though many of its outlets are incurring losses.

Cafe Coffee Day competitors include but are not limited to

 Barista
 Cafe Mocha
 Costa Coffee
 The Coffee Bean & Tea Leaf

Café Coffee Day (abbreviated as CCD) is an Indian café chain owned by Coffee Day Global
Limited, a subsidiary of Coffee Day Enterprises Limited. Coffee Day serves 1.8 billion cups of
coffee, annually, in six countries.[3]

Contents
[hide]

 1History
 2Outlets
 3Subsidiaries
 4Controversy and criticism
 5See also
 6Footnotes
 7External links

History[edit]
Cafe Coffee Day Global limited Company is a Chikkamagaluru based business which grows
coffee in its own estates of 12, 000 acres.[4] It is the largest producer of arabica beans in Asia
exporting to various countries including USA, Europe and Japan.[5]

Original logo
Café Coffee Day was started as a retail restaurant in 1996.[6] The first CCD outlet was set up on
July 11, 1996, at Brigade Road, Bengaluru, Karnataka. It rapidly expanded across various cities in
India adding more stores with more than 1000 cafés open across the nation by 2011.
In 2010, it was announced that a consortium led by Kohlberg Kravis Roberts would invest ₹10
billion(US$150 million) in Coffee Day Resorts, owned by the company.[7] The same year, the
logo was changed to the current logo, which the company stated was to showcase the chain as
a place to talk.[8] This was done with major changes in the layout of the stores, including the
addition of lounges and a total revamp of the interiors.[9]

A cup of coffee at CCD

Sandwich, Coffee & Tea served at Cafe Coffee Day

A veg burger at CCD

Cafe latte At CCD

The company is known for being vertical integrated to cut costs: from owning the
plantations,[4] growing the coffee,[4]making the coffee machines[10] to making the furniture for
the outlets.[4]

Outlets[edit]
As of March 2015, there are 1530 outlets across 28 states of India.[11] Cafe Coffee Day has also
expanded outside India with its outlets in Austria (Vienna), Czech Republic, Malaysia, Egypt and
Nepal.[3]

Subsidiaries[edit]
In June 2010, CCD acquired Café Emporio, a café chain from the Czech Republic. Cafe Emporio
has 11 cafés in Czech Republic. While 7 of them are in Prague, 1 is in Brno and Olomouc and 2
are at Freeport-Hate.
Cafe Coffee Day's divisions include:

 Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail outlets
 Coffee Day Square, a high level coffee bar in Bangalore, Chennai, Mumbai, New Delhi
 Coffee Day Xpress, which runs 900 plus Coffee Day kiosks
 Coffee Day Beverages, which runs over 34,000 vending machines
 Coffee Day Exports, its exporting wing
 Coffee Day Perfect, its fast-moving consumer goods packaged coffee division
 Coffee Day B2C Plant, Coffee vending machine manufacturing division

Controversy and criticism[edit]

On March 12, 2017, a customer Arpan Verma was slapped by a female employee of CCD's
Hawamahal outlet in Jaipur while he filmed cockroaches spotted inside a fridge there. The
video went viral on social media and was soon followed by a false sexual harassment case filed
by the employee against Arpan Verma .[12] With regard to the incident, CCD replied on March
27, 2017, "We are aware of the recent issue at our Cafe Coffee Day outlet in Hawamahal Jaipur.
We have escalated this issue and we are in talks with the consumer and the internal café team
to ascertain facts. We will take the required action without compromising in our endeavor to
deliver quality products and services to our patrons." The incident triggered several protests
against CCD that included the hashtag #boycottccd on social media.
Research
Methodology
Research Methodology

Zenk, S. et al. “Neighborhood Racial Composition, Neighborhood Poverty and the Spatial
Accessibility of Fast Food Stores in Metropolitan Detroit”. American Journal of Public (2005);
95(4).
Abstract: Residential environment is clearly related to health, specifically dietary health. In fact,
many of the most serious chronic illnesses in the United States are associated with dietary
deficiencies. Proper access to nutritious foods is essential to decreasing dietary related chronic
illness. Supermarkets provide dietary health resources through higher quality and lower costs
of nutritious foods. This study examines the spatial accessibility of supermarkets for 869
neighborhoods within Metropolitan Detroit with relation to community's poverty and racial
composition. The percentage of residents below the poverty line serves as the measure of
neighborhood poverty for the study. Supermarkets are defined as either a Supercenter such as
Super Kmart or a full-line grocery store associated with a national or regional grocery chain
such as Kroger. Spatial accessibility is equivalent to a Manhattan block. The study found that
the distance to the nearest Supermarket increased with increasing levels of neighborhood
poverty. While the distance to the nearest Supermarket was similar among the most
impoverished neighborhoods, African American communities averaged 1.1 mile greater
distance to the nearest supermarket than predominantly white neighborhoods.

Relevant Data:
Literature now associates residence in economically disadvantaged neighborhoods, after
controlling for socioeconomic status, with a variety of adverse diet-related health outcomes.
Disparities in Supermarket accessibility on the basis of race were evident among the most
impoverished neighborhoods: the most impoverished neighborhoods, in which African-
Americans resided, were on average were 1.1 miles farther from the nearest supermarket than
the most impoverished white neighborhoods.
Mean distance to the nearest supermarket increased with each successive tertile of percentage
poor for neighborhoods with a high proportion of African Americans but remained
approximately the same across all tertiles of percentage poor for neighborhoods with a low
proportion of African Americans (predominantly white) .
Inadequate accessibility to supermarkets may contribute to less nutritious diets and hence to
greater risk for chronic diet related disease.
Affordable public transportation needs to be improved integrating transportation routes with
supermarket locations .

Powell, Lisa M. et al. “Food store availability and neighborhood characteristics in the United
States”. American lifestyle(2007 Mar); 44(3):189-195.

Abstract: A 2006 study of the United States linked zip codes to census data, finding various
statistics about the availability of grocery stores in accordance to neighborhood descriptions
and demographics. There are distinct disparities between the access of blacks, whites and
Hispanics to supermarkets, with a definite correlation in location, socioeconomic status, and
race.

Relevant Data:

Low-income neighborhoods have fewer chain supermarkets with only 75% (p < 0.01) of that
available in middle-income neighborhoods .

Even after controlling for income and other covariates, the availability of chain supermarkets in
African American neighborhoods is only 52% (p < 0.01) of that in White neighborhoods with
even less relative availability in urban areas .

Hispanic neighborhoods have only 32% (p < 0.01) as many chain supermarkets compared to
non-Hispanic neighborhoods.
Larger sized food stores such as supermarkets versus smaller stores and chain versus non-chain
supermarkets have been shown to be more likely to stock healthful foods and to offer foods at
a lower cost.
Furthermore, given that low-income populations are less likely to have private means of
transportation and given that the nature of food shopping involves either transporting multiple
shopping bags or making more frequent shopping trips, the mobility strategies for food
shopping among low-income families will exacerbate the barriers to a limited number of
available local area supermarkets, in particular chain supermarkets. Indeed, several studies
have highlighted the mobility constraints faced by low-income households in their daily
activities including food shopping .

A recent report finds that African Americans prefer to shop in chain supermarkets and that one
of the key factors that influence these shoppers is transportation and location. Proximity is
important—37% of African American shoppers travel one mile or less to their primary grocery
store .

Grengs, Joe. “Does Public Transit Counteract the Segregation of Carless Households?
Measuring Spatial Patterns of Accessibility”. Transportation Research Board of the National
Academies (2007);
Abstract: This study researched Geographic Information Systems, technology that measures
transit use on smaller scales, to address the problem of urban populations that depend on
public transportation but have a lack of access to their everyday needs, including food.
Relevant Data/Quotations:
The analysis finds that over 7,500 households, representing 12 percent of New York City's
households, do not have reasonable access to supermarkets.
The study provides statistically significant evidence that poor accessibility is associated both
with low-income neighborhoods and with neighborhoods with disproportionately high
populations of African Americans.

Service Quality: An investigation into Malaysian Fast food consumers using DINESERV
Keang Meng Tang, University of Newcastle
Ursula Bougoure, Queensland University of Technology

As noted by Doran (2002), it is imperative that we seek to examine commonly accepted,

western-based marketing theory in the context of different countries to see whether such
concepts explain the same phenomena in consumers from different countries. Whilst extensive
research has been conducted on service quality over the past two decades (e.g. Bitner, 1990;
Cronin and Taylor, 1992, Parasuraman, Zeithaml and Berry, 1988), relatively little attention has
been paid to issues surrounding service quality in non-western countries, like the Asian region
and in particular, Malaysia.
Of the knowledge gained in the service quality literature, the work of Parasuraman, Zeithaml
and Berry (1988) provides an approach to defining and measuring service quality, known as
SERVQUAL. Incorporating five service quality dimensions of tangibles, reliability,
responsiveness, assurance and empathy, SERVQUAL has been well utilised within the literature.
This being said however, it is important to note that SERVQUAL has been found to possess
certain limitations, particularly when applied across different service industries (eg: Babakus
and Boller, 1992; Schneider and White, 2004). For example, DINESERV for restaurants was
developed by Stevens, Knutson and Patton (1995), in response to findings that SERVQUAL was
inadequate for the ‘unique’ restaurant environment (Dube, Renaghan and Miller, 1994).

Prior research suggests that not all service quality elements (within tools such as SERVQUAL,
DINESERV) are able to predict a consumer’s overall service quality perceptions or (OSQ) (Oliva,
Oliver and MacMillan, 1992). Therefore, it is important to identify the importance of service
quality and its dimensions in determining overall service quality (OSQ), as perceived by
customers. By addressing this issue, firms can gain an understanding of the areas they should
concentrate on when seeking to improve their overall service quality provisions (Oliva, Oliver
and MacMillan, 1992). In the context of the fast food industry, it appears likely that service
quality dimensions from DINESERV will positively effect overall service quality (OSQ)
perceptions by Malaysian consumers. Thus,
H1: Service quality (DINESERV) will positively effect Overall Service Quality perceptions
(OSQ) for Malaysian fast food consumers.
Customer satisfaction has long been recognised as a process (Oliver, 1981) and is the difference
between consumers’ perceived and expected performance of a product or service. In other
words, customer satisfaction occurs when performance is higher than expected, while
dissatisfaction occurs when performance is lower than expected. Overall, to gain customer
satisfaction, some argue that organisations need to exceed predictive expectations of
customers, rather than just satisfy expectations (Spreng and Mackoy, 1996).
Service quality and customer satisfaction are inarguably fundamental concepts within services
marketing theory (Spreng and Mackoy, 1996) and their relationship has seen increasing
research interest over the years (Bitner, 1990; Dabholkar, 1995; Spreng and Taylor, 1997;
Mohsin, 2003). While it is generally accepted that a positive relationship exists between service
quality and customer satisfaction, there is debate (Shemwell, Yavas and Bilgin, 1998) with
proposals of a causal link from customer satisfaction to service quality (Bitner, 1990), service
quality to customer satisfaction (Bolton and Drew, 1991; Spreng and Mackoy, 1996;
Parasuraman, Zeithaml and Berry, 1994); suggestions that directionality varies according to the
service situation (Dabholkar 1995) and even that there is no relationship under particular
circumstances (Parasuraman, Zeithaml and Berry, 1985). Such contention within the literature
has lead to repeated calls for further examination of this relationship (e.g. Rust and Oliver,
1994; Anderson and Fornell, 1994). In the case of fast food, however, it seems likely that high
service quality will lead to increased satisfaction for consumers. Thus,
H2: Service quality (DINESERV) will positively effect customer satisfaction for Malaysian
fast food consumers.
Intention to repurchase is an individual’s judgment about re-buying a designated service, taking
into account their current situation and likely circumstances (Hellier et al., 2003). Within the
literature, repurchase behaviour is seen as a form of loyalty, which according to Law, Hui and
Zhao, (2004) and Oliver (1997) is a deeply held commitment to consistently repatronise a
service in the future. Repurchase intentions have a powerful effect on potential business profit
with some reports arguing as much as 95 percent of profit arises from repeat purchases
(Hoffman et al., 2003). As such, loyal customers are valuable marketing tools, telling friends and
families of their positive experiences and creating new business and increased revenue for
successful service organisations. Service quality is tied to desirable business outcomes, such as
customer loyalty, which ultimately lead to increased profits (Schneider and White, 2004). As
argued by Rust, Zahorik and Keiningham (1995), service quality generates consumer intention
to return, which can translate into actual behaviours that may lead to increased revenues and
profits. In the extant literature however, there are mixed findings as to the relationship
between overall service quality and behaviors that are indicative of customer loyalty. For
example, while Boulding et al (1993) and Rust and Zahorik (1993) provide empirical support
that higher perceptions of service quality increases loyalty intention, Cronin and Taylor (1992)
found that overall service quality did not effect repurchase intentions. Overall however, results
tend to support this relationship and it seems likely that this will be the case for Malaysian
consumers of the fast food industry. Thus,
H3: Overall service quality (OSQ) will positively effect repurchase intentions for
Malaysian fast food consumers.
According to Schneider and White (2004), satisfied customers most likely will become loyal
which can then translate into higher profits organizations. As such, the relationship between
customer satisfaction and repurchase intentions has been examined with results implying that
satisfied customers are more likely to intend to repurchase (Taylor and Baker, 1994; Patterson
and Spreng, 1997). According to such findings, it appears likely that this will also be the case for
Malaysian consumers in the fast food industry. Thus,
H4: Customer satisfaction will positively effect repurchase intentions for Malaysian fast food
consumers.

Sample and Research design

A descriptive research design was adopted to do the survey with the help of the questionnaire. The
study used non probability convenience sampling. The methodology of study is the interview method
survey. The study is completely based on the primary data which is collected from different Fast food
stores and the sample size taken for study is 30 people mostly time 30 people but in online servey we
are using the real numbers.
Tools and Methods of Data Collection:
The interview is conducted for about 15 minutes with each person and collected the data. The tool for
the collection of data is a questionnaire. The questionnaire has 15 questions.

Data Processing and Analysis:

The data processing consists of coding the data collected in the form of questionnaire. The data
collected with the help of questionnaire is having the closed replies. One open ended replies have been
taken for that if any problems they are facing and for the close ended the replies are measured using
scales.

RESEARCH OBJECTIVES:
1. To compare the performance of blue decor and private companie in India.
2. To find out the performances of blue decor and other private companies in each
category (size. growth, productivity and efficiency)
3. To compare grievance management of blue decor and private online companies.
4.To know the satisfaction of customers regarding the all online policies of blue decor .

RESEARCH DESIGN :

a. Type of research design : Analytical Research

b. Data collection : Secondary Sources
c. Statistical Tools : Ratio Analysis Bar Graph

RESEARCH PROCESS:
In this research my research objective was to compare the performance of BLUE DECOR
and OTHER ONLINE SHOPING WEBSIDE companies. For this purpose I decided the four
broad categories under which I have compared the BLUE DECOR and OTHER ONLINE
companies. These are:

consolidated point table has been prepared to know that which sector is performing
better than other.
LIMITATIONS:

1. Could reach to a limited number of documents of different insurance companies in

regard to the management and other policies and resultant figures so as to identify the
exact cause of their lag in performance.
2. Due to the limited time could not study all the insurance companies original documents
individually.
3. Non-Proficiency in technical aspects of online companies might have hindered the best
analysis of the findings.

SIGNIFICANCE OF THE STUDY:

The Detailed Study has been done with the purpose of finding out the relative share of
Blue decor and Private Insurance in India. It is useful for the people associated with the
online Industry and the research associates related to the online hand craft Sector in
India. This study will acquaint them with the data of all the banks complied at one place
along with the findings, conclusion and recommendations. This research also helps to find
out whether customers are happy with Blue decor policies or not.
Analysis And
Interpretation
Q.1.What type of food will be prefer by indians?

a). Vegetarian (15)

b). Nonvegetarian (10)

c). Other (5)

Table 1
16

14

12

10

8
Column3
6

0
Vegetarian Nonvegetarian Other

Interpretation:- Accoding to the research in total of 30 people there are 15 people are
prefer veg and 10 goose for non.veg and 5 are egg tarin so they prefer some kind of both.
Q.2.What type of food will be prefer in International Market?
a). Vegetarian (5000)

b). Nonvegetarian (10,000)

c). Other (1000)

Tabel 2
12000

10000

8000

6000
Column1

4000

2000

0
Vegetarian Nonvegetarian Other

Interpretation:- This survey is created by the int.food tec compamy and accoding
to this the most number of people will be prefer (love to eat ) non.veg.
Q.3.What kind of food you prefer the most ?
a). Indian food (10)

b). Fast food (20)

Table 3
25

20

15

Column1
10

0
Indian food Fast food

Interpretation:- In this chart most kind of people love to eat fast food because
most of number of people is youth and they love most the of the fast food.
Q.4. How often do you visit tradisnational food restaurants?

a). Daily (1)

b). Weekly (7)

c). Monthly (20)

d). Rarely (2)

TABLE 4
25

20

15

Column1
10

0
DAILY WEEK MONTH RARELY

Interpretation:- In this question mostly number of people are going in monthly

time period
Q.5. . Which fast food restaurant do you patronise the most?

a). McDonald’s (15)

b). Subway (5)

c). Carl’s junior (5)

d). KFC (5)

e). Burger King (5)

TABLE 5
16

14

12

10

8
Column1
6

0
MCDON SUB CARL KFC BUG KING

Interpretation:- Accoding to this survey mostly number of people are enjoy in

mc donlads and other restaurant are equal ratio
Q.6. How much is your average spending per meal when you patron fast food
restaurant?
a). 50 – 100

b). 100 - 200

c). 200 - 500

d). 500 and above

TABLE 6
25

20

15

Column1
10

0
50-100 100-200 200-500 500 ABOVE

Interpretation:- This survey is describe that the most number of people are UES
100 TO 200 FOR THIS
Q.7. What is the reason for choice of favourite restaurant food ?

a). The price is affordable and reasonable

b). The choice food they offer

c). The service they provide (Friendliness, waiting time,efficiency)

d). The promotions (E.g. Free flow of drinks, value meals, student price)

Other (please specify)

TABLE 7
12

10

6
Column1

0
PRICE CHOICE SERVICE OTHERS

Interpretation:- Accoding to this question we are asking the what is the reason we
choseing a restaurant and most number of people are chose restaurant for the food
price and his service.
Q.8. What is your main concern when consuming fast food?

a). The price

b). The proportion of the food

c). Nutritional values and healthier choices

d). The accessibility (location and delivery services)

TABLE 8
25

20

15

Column1
10

0
A B C D

Interpretation:- The price is the reason the most number of people are consuming
the fast food because the price is very low so mostly they are using this.
Q.9. Do you currently consume fast food?
a). Yes

b). No

TABLE 9
25

20

15

Column1
10

0
YES NO

Interpretation:- In the morden time mostly number of people are consume fast
food but in this time many of them are health con. So they are avoid the fast food
Q.10. Dishes were served hygienically by neatly dressed servers ?

a). Strongly agree

b). Somewhat agree

c). Neutral

d). Somewhat disagree

e). Strongly disagree

TABLE 10
12

10

6
Column1

0
SOT.AGE SOM.AGREE NEUTRAL SOME.DIS STRON.DIS

Interpretation:- This survey is created by the int.food tec compamy and accoding
to this the most number of people will be prefer (love to eat ) non.veg.
Findings
 Findings:

In that serwar we will see according to this graph and question we are questioning what
king of work you are doing on inter net and the public reply maximum time they we're
doing online shopping in 100000 peoples 50000 are doing online shopping· Income of BD
is much greater than private insurance companies.
In that serway we will see In that question we are asking the website bluedecor how load
on your screen fast or slow so in 100000 people 70000 peoples say THE SIDE Load Faster.·
Size of balance sheet of private insurance companies are lagging much behind BD. Balance
sheet of BD is seven times bigger than that of ANY companies.

According to this question we are asking how many time thethey see are blue
pottery on main page and the 70000 people will say many time they will see are blue pottery
on the main page and this is the very hood response .

According to this serway we are find What kind of Internet connection they have what
they feel because Online marketing is all based on the Internet so that's is important to
find so 50,000 people say Good connection but 30,0000 say bar so we want to help him .
just started their business. Hence it is obvious that is having large number of
policyholders. ·

Number of branches of private insurance companies is increasing as the new players are
entering in this market. Also the established players are in expansion phase and hence are
expanding there business. There are many private insurance companies and hence there
total number of branches has gone past in the last financial year. But offices of private
insurance companies are mostly in urban areas and still it is BDC which covers most of the
area.

According to this serway we are find What kind of Internet connection they have what
they feel because Online marketing is all based on the Internet so that's is important to
find so 50,000 people say Good connection but 30,0000 say bar so we want to help him .
·

.We see that due to excellent service quality and attractive offers private insurance
companies have started getting a number of customers. They are growing rapidly. Though
LIC is also increasing its customer base but private insurance companies are moving at a
fast pace.

· Though the income of private insurance companies is negligible when compared with LIC
but then also the pace with which they are increasing their income is tremendous. Private
insurance companies are expanding their business and will certainly going to give a tough
competition to LIC in the coming days.

· BLUE DECOR is certainly having a large customer base. Private insurance companies are
not having that much number of customer base but they are increasing it rapidly. They
have registered a decent growth of 104.64 % in number of new policies in the year 2006-
07. Last year also their growth rate was 67.4 %

. BLUE DECOR, being the oldest player in the existing insurance market, has the biggest
market share of 73.9 % which was 87.3% five years earlier. We see that private insurance
companies are penetrating in the customer base of BLUE DECOR.

. Overall we can see that private insurance companies are giving a tough competition to
the BLUE DECOR and will certainly create a good business for themselves in the coming
days.
· There are many new entrants in this sector. There are many private insurance companies
who have reported loss in this and previous years. This is the main reason why private
insurance companies lag behind BLUE DECOR in case of business per branch. There is a big
difference between them. ·

Same is the case when it comes to income per branch. BLUE DECOR is much ahead of
private insurance companies in this field. They are undoubted champions in insurance
when it comes to profit earning.

· New business is increasingly going towards private insurance companies but still the
customer base of BLUE DECOR is very strong. In issuing new policies per branch also, they
are ahead of private insurance companies though not by very large margin
 . Customer base of BLUE DECOR is very strong and still business per branch, profit per
branch or premium per branch, they are leading much ahead of private insurance
companies. ·

BLUE DECOR has not shown their good concern when the matter of grievance handling
comes. Private insurance companies are far ahead in this matter. BLUE DECOR has just
resolved 25% cases in the last five years while private insurance companies have resolved
nearly 70% cases. This is a matter from where customer shift starts. We have seen the
rapid increase in customer base of private insurance companies which can be very much
affected by this factor

Overall we have seen that still BD is very famous but private insurance companies are
growing at exceptionally fast pace. Private companies show due concern in grievance
management and brings innovative schemes to attract the customers. Right now they
are giving good competition to and very soon they will give very tough competition to
BLUE DECOR.

Conclusions:

After Finding’s we can see about BLUE DECOR features and his tendency to take the expedient
approach and focus on the far right of the spectrum, Peacetime Contingency Operations and
conduct training as usual, while briefing that the BLUE DECOR block has been checked, will lead
us to a possibly fatal false sense of security. Instinctive behavior and ingrained training must be
adjusted to fit new circumstances. STXs must be developed locally or borrowed from units who
have already been through the training. The probability of becoming involved in a operation is
high. The potential to attract international attention, even with limited forces, is also great.
Units have demonstrated that with a balanced training focus and proper preparation, many
pitfalls outlined above can be avoided. BD is not conventional warfare. This is critical for the
counterinsurgent to understand. The insurgent’s violent and coercive strategy is applied so as
to achieve political, civil, military and psychological results. Hence, the counterinsurgent must
counter all of these strategic elements individually. In addition, the target of the insurgent’s
violence and coercion is the population. This is because the population is the centre of gravity
in BD. Therefore the counterinsurgent must also focus on the population to be successful. In
terms of military principles in counterinsurgency, doctrinal precision, professionalism,
independence, initiative, force precision, restraint, combined arms, precision engagement, joint
force, effective population based intelligence, integrated communications, a civil affairs
approach and high levels of training are critical. So all policies and plan toally satisfied the
customers

Recommendations and Suggestions:

1. The Administrative staff in BD is in deep slumber. Try writing a complaint to them and
they wont even bother to reply back. If you ask the Branch Manager for the
complaints book, he probably wont have it in place. If an Agent complains against any
staff, then the Agent is black listed and next time onwards his work is not done

. 2. In order to show a better performance & achieve branch Targets, Agents are
motivated by the Managers to split the policies. This not only adds to the inconvinience of
the policyholders but it also increases the expenses of . Competitions for Agents are held
with Prizes being offered on the number of policies sold and not on the number of lives
insured. Therefore many Agents are tempted to split the policies in order to get better
prizes. However if an agent wants the forms or sales literature, most of the time its out of
stock. But surprisingly just a week before any scheme is about to close, the office is
flooded with forms & sales literature. This is very disturbing.

3, As I earlier said, is lacking in Effective Leadership in recent times. Managers having

designations like Marketing Manager or Sales Manager donot have the capability to
motivate an audience at a meeting. Yes this is true even in a city like Mumbai. Even the
Senior level managers cannot make effective presentations or design a sales strategy.
Their only mantra at an Agents meeting is "Friends, bring more policies!’. If you ask them
how to bring more policies, they wont know. Its a pity !

4. Though LIC has more than 2000 branches, they are not systematically located. In
Mumbai’s Fort area, BD has more than 20 branches within a radius of 1.5kms. Whats the
use ? In the suburbs where most of the people reside, there are no branches at all. has no
branches in Bandra East, Khar East & West, Santacruz East, Vile Parle East, Andheri West,
Jogeshwari West, Mahim, Matunga, etc. If BLUE DECOR gives a thought to systematic
relocation of its offices, it will immensly help the policyholders.
5. Even though BLUE DECOR claims to have taken several initiatives in the IT sector,
policyholders still face problems in revival of their policies, payment of premium in several
branches, change of mode, change of address, etc.

6.The After-sales policy services department needs to be revamped. Policyholders feel

that agents are humble while selling a policy and thereafter they fail to provide any
service to the client. The truth is that BD is so weak in policy services department, that
even a good agent finds it difficult to get the work done from the administrative staff.

To sum up, i would say that will never cheat a Policyholder in payment of claim, but at the
same time everyone will agree that is not responsive to the needs of the customer. If you
have purchased an policies then dont forget to pay the premium on time, and when your
policy gets matured will honestly pay your Maturity amount on time. The employees are
sometimes rude in their behaviour with the Policyholder. If a claim cheques is handed
over by a courteous and smiling employee of BLUE DECOR, it will enhance the image of in
the mind of the policyholder. Today is not just an Insurance Company, is a Movement, is
a Cult, is a Religion.. You cannot deny that has become the way of life in India. Daily you
can hear someone or the other talking of in local trains, at fish markets, at restaurants, on
News Channels, in your own offices, etc. As i earlier said, has started lacking in effective
leadership. If a company like starts sponsoring irrelevant awards like which it had done 2
years ago, then it will send the wrong message in the minds of the policyholders. Imagine
India’s most famous institution sponsoring a Cine Awards function stating that it was done
to increase the brand awareness of . That sounded like a big joke. It is time that the top
level officials of BLUE DECOR come out of their air-conditioned cabins and travel by public
transport for sometime in order to feel the pulse of the common man.
APPENDICES
 QUESTIONNAIRE
Q.1.What type of food will be prefer by indians?

a). Vegetarian (15)

b). Nonvegetarian (10)

c). Other (5)

Q.2.What type of food will be prefer in International Market?

a). Vegetarian (5000)

b). Nonvegetarian (10,000)

c). Other (1000)

Q.3.What kind of food you perfer ?

a). Indian food (10)

b). Fast food (20)

Q.4. How often do you visit fast food restaurants?

Daily (5)

Weekly (5)
 Monthly (10)

Rarely (10)

Q.5. . Which fast food restaurant do you patronise the most?

McDonald’s (15)

Subway (5)

Carl’s junior (5)

KFC (5)

Burger King (5)

Q.6. How much is your average spending per meal when you patron fast food
restaurant?
$5 - $8

$8 - $11

$12 - $15

$15 and above

Q.7. What is the reason for choice of favourite restaurant food ?

The price is affordable and reasonable

The choice food they offer

The service they provide (Friendliness, waiting time,efficiency)

The promotions (E.g. Free flow of drinks, value meals, student price)

Other (please specify)

Q.8. What is your main concern when consuming fast food?

The price

The proportion of the food

Nutritional values and healthier choices

The accessibility (location and delivery services)

 Q.9. Do you currently consume fast food?
Yes

No

Q.10. Dishes were served hygienically by neatly dressed servers ?

 Strongly agree
 Somewhat agree
 Neutral
 Somewhat disagree
 Strongly disagree
 Bibliography
Kotler Philip,on food , 12 th ed. Pearson Educations
Hooley Graham, food research And Competitive Positioning, 5 th ed.
Pearson Educations
Nash Edward, Direct Marketing, 4 th ed. McGraw-Hill Professional
Chabra T.N., Managing Human Resource, 2 ND ed. Vanity Books
International
Ramaswami V.S., Namakumari S., Marketing Management,4 th ed.
Macmillian Publishers India.

WEBLIOGRAPHY
www.FOODPANDA.in

www.FOODCO.in

www.FINDFOOD.in